Trend warriors huddle up!
If you’re looking for long-term trends to trade, then you’ll definitely want to check out GBP/USD testing a key inflection point.
What do you think of the setup?
GBP/USD: Daily
If you’ve been too busy looking at short-term charts, then you should know that the British pound has been in an uptrend against the U.S. dollar since late September 2022 when the pair jumped from the 1.0400 support zone.
Fast forward a couple of months and now the pair is trading closer to the 1.2700 psychological handle.
What makes the setup interesting today is that 1.2700 is right around the trend line support that hasn’t been broken since the pair started showing higher highs and higher lows.
Not only that, but GBP/USD is also sitting on the 50% Fibonacci retracement of a month-long downswing from mid-July. Oh, and look at the 100 SMA hanging out just under the trend line!
A long trade at current levels or the first signs of bullish momentum would yield a good risk ratio especially if you aim for July’s highs near 1.3100.
Not convinced that Cable can still extend its uptrend?
You can also look into shorting the pair as soon as you see sustained trading below the trend line that we’ve marked.
Just make sure that you’re trading a breakout and not a fakeout!
Whichever bias you end up trading, make sure to use your best risk management strategies you can trade for another day!
